Comments on: Putting Together Your Personal Profit and Loss Table

By: FinanciallySmart

FinanciallySmart — Wed, 25 Nov 2009 16:00:19 +0000

A very informative article. Small business owners should use this concept and not be afraid in knowing their losses. This will encourage them to make the necessary adjustments so that their business become profitable.

By: Wojciech Kulicki

Wojciech Kulicki — Sat, 14 Nov 2009 20:34:37 +0000

Acceptance is an absolute must with your finances! I think we have to face our downsides just as much as our strengths and deal with it.

By: Wojciech Kulicki

Wojciech Kulicki — Sat, 14 Nov 2009 20:33:24 +0000

I agree, Len–sometimes the only option is to revise. But too often, I think we just use the flexibility we give ourselves to make it look like we’re doing better than we actually are.

If you’re honest with yourself and keep your eye on the goal, I don’t think you can go wrong.

By: Wojciech Kulicki

Wojciech Kulicki — Sat, 14 Nov 2009 19:50:35 +0000

Hi Miranda! Great point–if you already have a home business, this isn’t really a stretch for you. For those of us working outside the home, it takes a little bit of getting used to.

By: Financial Samurai

Financial Samurai — Sat, 14 Nov 2009 14:23:02 +0000

Nice one Wojo. Sometimes it’s scary to face the truth about how much in losses we have, so we don’t do it.

If we can highlight the losses, we can highlight the problem and fix it.

By: Len Penzo

Len Penzo — Thu, 12 Nov 2009 14:44:55 +0000

Great post, Wojo. As you know, the mantra at my site – and in my home as well – is to treat your household like a business. And a P&L table is a great tool for household strategic planning.

Great advice about not revising the table, too. Although I do have to say, if things start to get too out of whack and then stay there despite your best efforts to correct them, then perhaps your projections may have been just too optimistic (or pessimistic, as the case may be) and thngs will need to be tweeked.

Len
Len Penzo dot Com

By: Miranda

Miranda — Thu, 12 Nov 2009 14:01:08 +0000

I put together a P&L statement every year for my home business. Since that is our primary income, it mostly applies to our personal finance as well. I like the idea of looking at everything, and seeing where it is all going.